Mumias Sugar needs over Sh5bn to stay afloat

Many machines at the Mumias Sugar factory are idle due to lack of adequate cane. FILE PHOTO | NMG

Mumias Sugar Company #ticker:MSC needs more than Sh5.1 billion to resume full operations, managing director Nashon Aseka has disclosed.

Mr Aseka, who assumed office on Friday, said the company had many challenges which require the support of all stakeholders. He said his priority would be to ensure that farmers are well taken care, and to resolve cane poaching.

The MD disclosed that many machines at the factory were idle due to lack of adequate cane. He blamed this on mismanagement by former managers.

“I have worked here before for 24 years as the factory manager. Many problems have emerged among workers and farmers,” he said.

Mr Aseka is the fourth managing director at Mumias since the exit of Dr Evans Kidero in 2012 to contest for the Nairobi governor seat. Dr Kidero was succeeded by finance manager Peter Kebati, who paved the way for Mr Coutts Otolo. The board then replaced Mr Otolo with immediate former MD Erroll Johnson.

Mr Aseka, who was introduced to workers by board chairman Kennedy Ngumbau, said plans were underway to restructure the company so as to reduce its wage bill. “We might be forced to retrench workers in some sections as we will lease out some facilities that are less productive,” he said.